Hero MotoCorp Ltd (HMCL) has submitted plans to begin production at its proposed plant in Chittoor district in Andhra Pradesh.

HMCL had signed a Memorandum of Understanding with the Andhra Pradesh government in September 2014 for setting up a two-wheeler manufacturing facility at Madannapalem in Chittoor district. The plant would come up close to the existing Sri City Special Economic Zone.

According to the plan, the company will commence production of 5 lakh units (per annum) in the first phase by December 2018 with an investment of Rs. 800 crore, a recent state government order said.

The two-wheeler giant will add another five lakh units to its production capacity in the second phase by December 2020, and an additional eight lakh units in the third phase by December 2023 with an investment of Rs. 800 crore for both the phases, AP's Industries Secretary M Girija Shankar said in the order.

HMCL informed the government in a letter on March 31 that the upcoming plant would be state-of-the-art and deploying robotics, cutting edge manufacturing technology and green building technology and it would be made a manufacturing hub for two-wheelers for east and south Asia.

HMCL also promised an investment of another Rs. 1,600 crore for development of ancillary units that could create direct and indirect employment for 15,000 people.